How to Change Bank Account in LAMF

Introduction: Why Bank Account Change Matters in LAMF

Your bank account in LAMF is linked to your mutual fund folio. It is used for:

• Loan disbursal
• Interest payments
• Redemption proceeds

If your bank account changes, you must update it to avoid transaction issues.

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Important Point: LAMF Bank = Mutual Fund Bank

LAMF is directly linked to your mutual fund folio. So, you don’t change the bank account in LAMF separately—you update it in your mutual fund folio.

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Ways to Change Bank Account in LAMF

There are two main methods:

1. Online Method (MF Central / Platforms)

Steps:

• Login to MF Central using PAN & mobile
• Go to “Service Request” → Change Bank Account
• Select folio
• Enter new bank details
• Upload cancelled cheque (old & new)
• Verify via OTP and submit

Processing time: 1–4 working days :contentReference[oaicite:0]{index=0}

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2. Offline Method (AMC / CAMS / KFintech)

Steps:

• Fill “Change of Bank Mandate Form”
• Attach required documents
• Submit to AMC or registrar

This method is mandatory for higher investment values (e.g., above ₹10 lakh in many cases) :contentReference[oaicite:1]{index=1}

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Documents Required

You typically need:

• Cancelled cheque (new account)
• Old bank proof (cheque/statement)
• Bank statement or passbook copy
• Bank letter (if old account closed)

These documents are required to prevent fraud and verify ownership :contentReference[oaicite:2]{index=2}

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Key Rules You Must Know

1. Default Bank Account Concept
   You can register multiple bank accounts, but one must be marked as default for transactions :contentReference[oaicite:3]{index=3}

2. Cooling Period
   After updating bank details, redemption or transactions may be restricted for ~10 days for security :contentReference[oaicite:4]{index=4}

3. No Instant Change During Redemption
   You cannot change bank details and redeem funds at the same time

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Special Case: Active LAMF Loan

If you already have an active LAMF:

• Inform your lender (bank/NBFC)
• Update mandate for EMI/interest auto-debit
• Ensure lien-marked folio is updated correctly

Failing this may cause repayment failures.

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Timeline for Bank Change

• Online: 1–4 working days
• Offline: 3–7 working days
• Cooling period: ~10 days (for safety)

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Common Mistakes to Avoid

• Not updating old bank proof
• Entering incorrect IFSC
• Ignoring lender update (in active LAMF)
• Using unregistered bank during redemption

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Best Practice

• Register multiple bank accounts in folio
• Keep one as default
• Update before closing old account

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Strategic Insight

Bank account change is a folio-level update, not a loan-level change. Once updated correctly, it automatically reflects in your LAMF setup.

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Final Thought

Changing your bank account in LAMF is a straightforward process, but it must be done carefully through your mutual fund folio.

Ensure proper documentation, follow timelines, and inform your lender if a loan is active.

This ensures smooth transactions, timely repayments, and uninterrupted access to your funds.

Loan Against Mutual Fund is subject to applicable interest rates and credit assessment. Mutual fund units pledged as collateral are subject to market risks. Please read all loan-related documents carefully.